All articles tagged with #defence spending
The government announced £8.4bn to advance the Dreadnought-class nuclear submarines as part of a £63.6bn Defence Nuclear Enterprise, aiming to replace Vanguard boats and protect Britain for decades while supporting about 47,000 current jobs (rising to 65,000 by 2030) and 22,000 apprenticeships, with Barrow-in-Furness highlighted for regional economic benefits amid broader debates on defence spending targets and funding.
Now chancellor, John Healey must deliver on his defence funding promises after resigning as defence secretary over Treasury constraints and a delayed, underfunded Defence Investment Plan; reaching 3% of GDP by 2030 would require about £17.3bn more annually (roughly £90bn defence budget by 2030), risking tax rises or new funding methods as key programmes like drones and long-range weapons remain underfunded.
Andy Burnham becomes the UK’s prime minister after Labour leader Keir Starmer resigns, inheriting a stagnant economy with limited fiscal room, a fragile bond market, and a Labour base that has drifted in polls; his challenges include balancing defence spending with welfare, possibly expanding North Sea drilling, navigating tense UK-China and US relations, refining Gaza diplomacy, and countering Reform UK’s rise while trying to translate policy into tangible improvements for ordinary voters.
At NATO’s Ankara summit, leaders pledged more than €70 billion to Ukraine and over $50 billion in new procurements, reaffirmed Article 5, and signaled unity on Ukraine policy, but US President Donald Trump publicly attacked allies over defense spending and threatened a Spain embargo, underscoring ongoing strains. He also floated lifting sanctions on Turkey and potential F-35 sales, while Europe pushes for greater defense autonomy and a new UK–Netherlands maritime partnership, leaving experts to warn that NATO unity remains fragile and dependent on US commitments.
At a NATO summit in Ankara, US President Donald Trump attacked Spain as a 'wasted cause' and a 'terrible partner' and threatened to cut trade, while reviving his long-standing push to have Greenland belong to the US instead of Denmark. Spanish Prime Minister Pedro Sánchez said relations with the US are positive and highlighted Spain’s defense commitments (2% of GDP in 2025) and its refusal to host US bases at Morón and Rota. Trump argued that NATO allies owe the US more for security, reiterated Greenland’s strategic importance to the US, and noted that Denmark and Greenland say Greenland is not for sale. The EU stressed mutual trade benefits with the US, and all 32 NATO members pledged their commitment to Article Five.}
Canada has selected Germany’s TKMS to build 12 diesel-powered, Arctic-capable submarines, with about four planned by 2034, marking Ottawa’s biggest defence push and a shift closer to Europe. The deal includes joint German–Norwegian collaboration, logistics and maintenance, and could be scuppered if negotiations fail, in which case Ottawa would consider Hanwha Ocean; the decision comes amid NATO security concerns and debates over long-term defence spending and US-Canada ties.
Canada selected German firm TKMS to build a 12‑submarine fleet in the largest defence procurement in its history, with negotiations to sign a contract and no cost disclosed. Prime Minister Mark Carney said the deal would boost industrial capacity and Arctic sovereignty as Canada raises defence spending to 2% of GDP (aiming for 5% by 2035) and strengthens ties with Europe through a NATO-aligned partnership with Norway on a low‑risk, multi‑year program designed to keep three submarines reliably operational at once.
Japan’s Mitsubishi Heavy Industries chief Eisaku Ito warns that converting idle car factories into drone production would be a costly mistake, arguing that drone specifications constantly change and car plants aren’t built to produce low-volume, highly variable military systems; he envisions MHI playing a central, flexible role in Tokyo’s drone push as defence budgets rise and the Shield coastal defence programme seeks to deploy thousands of unmanned aircraft.
Kemi Badenoch grills Keir Starmer at PMQs over the defence investment plan, accusing him of leaving a £5bn funding shortfall for Andy Burnham to cover; Starmer defends the plan as a £300bn, four-year upgrade—the largest defence increase in 40 years—funded by identified savings and headroom from the Budget, as Ed Davey pushes for a stronger missile defence.
Britain's long-awaited Defence Investment Plan pledges £298bn over the next four years—£15bn more than previously and the biggest uplift since the Cold War—yet critics say it underfunds defence at about 2.7% of GDP by 2030 (NATO target 3%). The plan pivots toward cheaper, autonomous systems and drones, with £63bn for the nuclear deterrent, £8bn for a UK-led next-generation RAF stealth aircraft, and a push to hybrid crews. It also funds replenishing Ukraine aid (£11bn), air/missile defence (£790m), and protection of undersea cables (£330m). The Army grows to ~76,000; some programmes are cut (e.g., Type 83 destroyers, Storm Shadow replacement), and expansion of Cadets is delayed.
Prime Minister Keir Starmer is set to disclose a long-delayed Defence Investment Plan that commits billions to modernise the armed forces, including a £5bn boost for drones and autonomous weapons, plans for six hybrid warships, autonomous RAF capabilities, and a major drone-testing centre, as Whitehall negotiates funding ahead of a Nato summit.
France, the UK, Italy, Poland and Germany met in Berlin for an E5 summit to coordinate Ukraine support, commit to defence spending, and advance joint capabilities ahead of NATO's July summit in Ankara, building on the Évian moment and expanding the E3 framework to include Warsaw's input while signaling Europe’s push to share more security responsibilities amid a U.S. drawdown and Russia-focused tensions.
Downing Street says the government will press ahead with the controversial Defence Investment Plan and publish it before the NATO summit, despite Sir Keir Starmer’s resignation as prime minister and Labour leader. The plan’s publication and the broader defence funding package, which has already prompted ministerial resignations, could be revisited by a future leader, complicating the government’s credibility with allies and shaping the response of a coming prime minister.
US defence secretary Pete Hegseth announced a six‑month review of American forces in Europe, criticizing allies for not meeting defence spending targets and signaling planned withdrawals (including about 5,000 troops from Germany) and the cancellation of a long‑range fire battalion deployment. Washington also floated pulling major assets—one carrier strike group and submarines capable of launching cruise missiles—aimed at reshaping the NATO force model as talks ahead of the Ankara summit unfold and pushing burden-sharing to the forefront.
UK’s defence leadership warns that the Defence Investment Plan is underfunded for day-to-day operations and training, risking reduced military readiness unless more funding is provided, as Defence Secretary John Healey resigns and Dan Jarvis reviews how the money will be spent.